economics assesment
Study online at https://quizlet.com/_bhn5
1. demand the willingness and ability to buy or consume something
2. law of demand as price goes up, quantity demanded goes down.
3. 3 factors that influence sustitution effect, real income effect, diminishing marginal utility
demand
4. substitution effect as the price of one good or service goes up, quantity demanded for all of
its substitutes goes up.
5. real income effect as prices rise and your income stays the same, quantity demanded for all
goods or services goes down.
6. diminishing marginal assuming all things stay the same with each additional unit consumed, we
utility recieve less satisfaction then the previous unit consumed.
7. ceteris paribus all things held constant
8. demand curve the graphical representation of a demand scheduale
9. only shows how we re- demand curve
spond to changes in
price
10. market demand sum of all individual demands in the market
11. 2 causes in shifts income and expectations
12. income ex) normal gods and inferior
13. normal goods goods that people buy more of as income increases
14. inferior goods goods that people buy less of as income increases
15. incentive for greater profit and market entry
1/3
Study online at https://quizlet.com/_bhn5
1. demand the willingness and ability to buy or consume something
2. law of demand as price goes up, quantity demanded goes down.
3. 3 factors that influence sustitution effect, real income effect, diminishing marginal utility
demand
4. substitution effect as the price of one good or service goes up, quantity demanded for all of
its substitutes goes up.
5. real income effect as prices rise and your income stays the same, quantity demanded for all
goods or services goes down.
6. diminishing marginal assuming all things stay the same with each additional unit consumed, we
utility recieve less satisfaction then the previous unit consumed.
7. ceteris paribus all things held constant
8. demand curve the graphical representation of a demand scheduale
9. only shows how we re- demand curve
spond to changes in
price
10. market demand sum of all individual demands in the market
11. 2 causes in shifts income and expectations
12. income ex) normal gods and inferior
13. normal goods goods that people buy more of as income increases
14. inferior goods goods that people buy less of as income increases
15. incentive for greater profit and market entry
1/3
